Dropshipping has exploded in popularity in recent years as an easy, low-cost way to start an online business. However, the dropshipping market has become increasingly saturated and competitive. Issues like long shipping times, low profit margins, and lack of quality control have some entrepreneurs seeking alternatives.
If you‘re looking for a different ecommerce model to try in 2024, you‘ve come to the right place. In this post, we‘ll dive into 12 of the best dropshipping alternatives, exploring what they are, how they work, and their key pros and cons. Whether you want to sell your own products, offer services, or become a content creator, there‘s an option on this list for you. Let‘s get started!
1. Print on Demand
Print on demand follows a similar model to dropshipping, except instead of generic products, you sell items customized with your own original designs. When a customer places an order, your print provider manufactures the item, prints your design on it, and ships it directly to your customer. Popular print-on-demand products include t-shirts, mugs, phone cases, and wall art.
Pros:
- Sell unique products featuring your designs
- No need to purchase or hold inventory
- Easier to build a distinct brand vs. dropshipping
- Many print providers offer integrations with major ecommerce platforms
- Often faster shipping times than traditional dropshipping
Cons:
- Lower profit margins than selling your own inventory
- Limited control over shipping and fulfillment
- Can be difficult to stand out in popular niches like t-shirts
To get started with print on demand, sign up with a provider like Printful, Printify, or Gooten. Use their mockup generators to create your designs, connect your store, and start selling. Focus on creating eye-catching, original designs that appeal to a specific target market.
2. Private Label Dropshipping
Want more control over your products and brand than traditional dropshipping allows? Consider private label dropshipping. With this model, you work with a manufacturer to create your own branded products, which are then stored and shipped by the manufacturer or a third-party logistics provider.
Pros:
- Sell unique products not available from other retailers
- Full control over branding, packaging, and customer experience
- Higher perceived value than unbranded generic products
- Easier to command premium prices and higher profit margins
Cons:
- Higher startup costs for product development and minimum order quantities
- Finding and communicating with overseas manufacturers can be challenging
- Shipping times can still be lengthy if manufacturing overseas
The key to success with private label dropshipping is finding the right manufacturing partner. Directories like Alibaba and online communities like the Ecommerce Fuel Forum can help you connect with vetted manufacturers. Be sure to order samples, communicate your requirements clearly, and start with conservative order quantities.
3. Wholesaling
Wholesaling involves purchasing products in bulk directly from brands or distributors, marking them up, and reselling them to retailers or consumers through your own store or marketplace. Profit margins tend to be lower than white labeling or manufacturing your own products, but you can make up for it in volume.
Pros:
- Sell established, proven products from known brands
- No need to manufacture or customize products yourself
- Can offer a wider product selection than manufacturing
- Many suppliers have low or no minimum order quantities
Cons:
- High competition and risk of price wars with other wholesalers
- Lower profit margins, so you need to sell high volumes
- Need to purchase and store inventory (although some offer dropshipping)
To start wholesaling, decide on a niche and research potential suppliers and brands. Attend trade shows, join industry associations, and analyze competitors to find opportunities. Focus on building relationships with suppliers and optimizing your operations to keep costs down.
4. White Labeling
White labeling is when you purchase a generic product directly from a manufacturer, add your branding and packaging, and sell it as your own. This is a good option if you want to sell a specific product, but don‘t have the resources to develop and manufacture it from scratch. Many supplements, cosmetics, and food products are white labeled.
Pros:
- Sell unique branded products without developing them yourself
- More control over packaging and branding compared to wholesaling
- Can be less expensive and faster than custom manufacturing
- Many manufacturers have low minimum order quantities
Cons:
- Can be difficult to differentiate from competitors selling the same base product
- Limited ability to customize the product itself
- Need to purchase and store inventory upfront
To pursue white labeling, start by deciding on a product category and researching potential manufacturers. Alibaba can be a good resource, as can industry-specific directories. Be sure to vet potential partners carefully, order samples, and invest in quality packaging and design.
5. Selling Digital Products
Digital products like ebooks, courses, software, and graphics can be a profitable and scalable alternative to physical products. Since there‘s no inventory or shipping to worry about, your main costs are in developing the products themselves. You can sell digital products through your own site or on marketplaces like Etsy, Creative Market, and Udemy.
Pros:
- High profit margins with no cost of goods sold
- Infinitely scalable without worrying about inventory or logistics
- Can be automated with instant delivery after purchase
- Establish yourself as an expert and build a loyal audience
Cons:
- Can be time-consuming and expensive to develop high-quality digital products
- High competition in popular categories like online courses
- Some customers may expect ongoing updates and support
To sell digital products, start by identifying a niche where you have expertise or passion. Research competitors and identify gaps or opportunities to differentiate. Invest time in creating a high-quality, polished product and building an audience before you launch. Consider starting with a "minimum viable product" and gathering feedback before investing in a full product.
6. Affiliate Marketing
Affiliate marketing involves promoting other companies‘ products or services and earning a commission on resulting sales. Affiliate marketers typically have a website, blog, or social media presence where they post links to products. When a visitor clicks on an affiliate link and makes a purchase, the affiliate earns a percentage of the sale.
Pros:
- No need to develop, manufacture, or ship products
- Minimal startup and operating costs
- Huge variety of products and services to promote
- Passive income potential once you‘ve built an audience
Cons:
- Highly competitive with slim margins in popular niches
- No control over product quality, pricing, or customer experience
- Can be challenging to generate substantial traffic and sales
- Commissions can change or disappear with no notice
To get started with affiliate marketing, decide on a niche and build a website or audience where you can promote relevant products authentically. Consider starting a blog, YouTube channel, or niche Instagram account. Sign up for affiliate programs in your niche, which you can find on platforms like ShareASale, CJ, and Amazon Associates. Focus on providing value and building trust with your audience before promoting products.
7. Selling Handmade Products
If you‘re crafty or artistic, consider selling your own handmade products. Marketplaces like Etsy and Amazon Handmade have made it easy to reach a global audience of consumers seeking unique, artisanal products. Popular categories include jewelry, art, home decor, and self-care products.
Pros:
- Full creative control over your products and brand
- Higher perceived value and profit margins than mass-produced goods
- Rewarding to share your passion and build a loyal customer base
- Existing marketplaces like Etsy have large built-in audiences
Cons:
- Can be time-consuming to produce items, especially as you grow
- Need to constantly come up with new designs to keep things fresh
- High competition makes it challenging to stand out
- Etsy and other marketplaces charge listing and transaction fees
To sell handmade products, first decide on your niche and develop a strong, cohesive product line. Take high-quality photos and write compelling product descriptions. Open a shop on Etsy or your own website using a platform like Shopify. Drive traffic to your shop through social media, email marketing, and other channels. As you grow, consider outsourcing certain tasks or partnering with other artisans.
8. Selling Products You Make (But Not Handmade)
If you have an idea for an original product, you could develop and manufacture it yourself. This involves a significant investment of time and money upfront, but can pay off in the long run with high profit margins and a defensible brand. Many direct-to-consumer brands like Warby Parker and Casper have succeeded with this model.
Pros:
- Full control over product design, branding, and customer experience
- Higher perceived value and profit margins
- Opportunity to build a loyal customer base and strong brand
- Potential to scale with the right manufacturing partners
Cons:
- High startup costs for product development and initial inventory
- Manufacturing and logistics can be complex and time-consuming
- Need to invest heavily in marketing to build brand awareness
- Risk of product not resonating with consumers or having quality issues
To launch your own product, start by validating your idea with thorough market research and customer feedback. Develop prototypes or samples and get input from your target audience. Identify potential manufacturers and suppliers, and create a detailed business plan. Consider launching with a crowdfunding campaign to mitigate risk and build buzz. Be prepared to invest significant time and resources into marketing and iteration.
9. Reselling and Flipping
Reselling involves purchasing products from retail stores, thrift shops, estate sales, or online marketplaces and reselling them for a profit. Flipping is a similar concept, but often involves refurbishing or improving the item before reselling it. This model requires a keen eye for value and demand.
Pros:
- Low startup costs and risk compared to buying inventory wholesale
- Flexibility to test out different products and markets
- Potential for high profit margins, especially with rare or high-demand items
- Thrilling "treasure hunt" aspect to sourcing products
Cons:
- Time-consuming to source products individually
- Need to constantly find new inventory to sell
- Can be challenging to scale due to inconsistent inventory
- Requires space to store inventory, plus time for shipping
To start reselling, decide on a niche like vintage clothing, collectibles, or refurbished electronics. Research platforms like eBay, Amazon, and Facebook Marketplace to determine demand and pricing. Start by selling items you already own, then reinvest profits into new inventory. Focus on items with a high profit margin and sell-through rate.
10. Starting a Service-Based Business
If you have a skill or expertise that others need, consider starting a service-based business. This could include anything from graphic design and copywriting to pet-sitting and home cleaning. Service businesses tend to have low startup costs and can be run from home, making them accessible to a wide range of entrepreneurs.
Pros:
- Low startup costs, as you‘re selling your time and expertise
- Flexibility to work from home or remotely
- Can be easier to get first clients than to get first customers for a product
- Rewarding to help others and see tangible results of your work
Cons:
- Trading time for money can limit your scalability
- Can be challenging to stand out in crowded service markets
- Demanding clients and inconsistent work can be stressful
- Need to constantly market yourself to find new clients
To start a service business, identify a skill you excel at that‘s in demand. Define your niche and target customer, and create a portfolio of work samples. Set your pricing based on market rates and your experience level. Reach out to your network for referrals, and create a website and social media presence to showcase your expertise. As you grow, consider outsourcing or automating certain aspects of your business.
11. Becoming an Influencer or Content Creator
If you enjoy creating content and engaging with an audience, consider becoming an influencer or content creator. This could involve starting a blog, podcast, YouTube channel, or building a following on social media. By creating valuable content and building a loyal audience, you can earn money through avenues like sponsorships, affiliate marketing, and selling your own products.
Pros:
- Flexibility to work from anywhere and set your own schedule
- Rewarding to build a community around something you‘re passionate about
- Multiple income streams, including ads, sponsorships, and digital products
- Potential for free products and experiences as your influence grows
Cons:
- Can take a long time to build a substantial audience and income
- High competition makes it challenging to stand out, especially as a beginner
- Constantly creating new content can lead to burnout
- Dealing with negativity and criticism from online trolls
To become a content creator, first choose a niche and medium that aligns with your interests and skills. Brainstorm content ideas and create a posting schedule to build a consistent body of work. Engage with other creators in your niche and collaborate to cross-promote your audiences. Monetize your platform through avenues like ads, sponsorships, affiliate links, and your own products. Focus on providing value to your audience above all else.
12. Freelancing
Freelancing involves offering your skills and services to clients on a project basis. This could include anything from writing and graphic design to web development and virtual assistance. Platforms like Upwork and Freelancer.com make it easy to find clients, while portfolios on sites like Behance can help you showcase your work.
Pros:
- Flexibility to work with multiple clients and set your own schedule
- Low startup costs, as you‘re selling your existing skills
- Can be a great way to build experience and your portfolio
- Potential for high hourly rates, especially with specialized skills
Cons:
- Feast-or-famine cycles and inconsistent income can be stressful
- Need to constantly market yourself and find new clients
- Lack of employee benefits like health insurance and paid time off
- Dealing with difficult clients and late payments can be frustrating
To start freelancing, define your niche and target client. Create a strong portfolio and set competitive rates for your services. Set up a professional website and profiles on freelance marketplaces. Reach out to your existing network for referrals, and consider offering your services for free or at a discount to build your portfolio. Focus on clear communication, hitting deadlines, and going above and beyond for your clients.
Conclusion
As you can see, there are plenty of viable alternatives to dropshipping for starting an online business in 2024. Whether you want to sell physical products, digital products, or services, there‘s a model on this list that could be a fit for your skills and interests.
The key is to choose a model that aligns with your strengths, and that has a clear path to profitability. Consider starting small and testing out a few different ideas before going all-in on one. And remember, success with any of these models requires hard work, persistence, and a willingness to learn and adapt.
No matter which model you choose, focus on providing real value to your target customers. Building a loyal audience and positive reputation will serve you well no matter what you‘re selling. With the right strategy and mindset, you can build a thriving online business on your own terms.
